Suppose a Profit-Maximizing Monopoly Is Able to Employ Group Price

question 20

Multiple Choice

Suppose a profit-maximizing monopoly is able to employ group price discrimination.The marginal cost of providing the good is constant and the same in both markets.The marginal revenue the firm earns on the last unit sold in the market with the higher price will be

• A)greater than the marginal revenue the firm earns on the last unit sold in the market with the higher price.
• B)less than the marginal revenue the firm earns on the last unit sold in the market with the higher price.
• C)equal to the marginal revenue the firm earns on the last unit sold in the market with the higher price.
• D)greater than the marginal cost of the last unit.

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Definitions:

Deep Vein Thrombophlebitis

A serious condition involving the formation of a blood clot within a deep vein, typically in the legs, which can lead to inflammation and potential complications if untreated.

Venous Stasis Ulcer

A type of ulcer that develops primarily on the lower legs, as a result of chronic venous insufficiency and poor blood circulation.

Pulsus Paradoxus

An exaggerated decrease in systolic blood pressure during inspiration, often indicating specific types of heart or chest problems.

Pulsus Alternans

A physical finding where there is alternating amplitude of the pulse with each beat, usually indicating left ventricular dysfunction.